A little over a week ago, Doc announced he had sold a 10K, approximately 2 ounce gold medal he won as a teaching award from UWO. He also asked readers to guess how much he had sold it for.
I took the market value of pure gold and adjusted it by a factor of 10/24 (24K gold is pure gold) and got a result of approximately $920. I was right in that he sold it for less than what it was worth, but my estimate of $800 was way off. I correctly guessed the "why" reason (high opportunity costs), but my guess was so general that it's barely worth even mentioning now. But I'll take what I can get. However, my reasoning for "why now?" wasn't even in the same universe. The price and the reason.
Price: $454 Canadian
Why so low? One reason was because of the high transactions costs that someone who lives in "the boonies" will have to pay to get it sold. Instead of incurring those costs directly, he incurred them indirectly by selling the medal at below market value.
See. I told you I got the opportunity cost part right.
A second reason was that the medal actually weighed a bit less than 2 ounces.
But as for why now? My guess was that John believed that there was a bubble. But it had nothing to do with John believing there was a bubble.
At the same time, Eliot had some good insight about my motives in selling the medal. I figured that if I didn't sell it, it would become a part of my estate when I die, and my heirs would sell it as part of a box of crud for only a song to someone who buys up boxes of stuff at estate sales. And, as Eliot noted, I really don't have a tonne of warm feelings about the issuer of the award.
I did not adjust for disutility, but the thought did cross my mind in my calculations.